Europe and India drive wool demand

BKB’s merino wool indicator rose by 1,6% to end at R53,96/kg (clean) at the season’s fifth wool sale – 4% higher than last year’s sale, while the rand has appreciated by 6% against the US dollar over the same period.

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BKB’s wool marketing manager Basie Claassen said the market closed dearer despite a stronger rand. “Direct greasy wool exporters remain dominant, with Europe and India as end destinations. Good-quality fleece wool and pieces 60mm and longer in all micron categories are 1% to 2% better, but prices of short strong wool and inferior types remain disappointing.”

Cape Mohair and Wool’s James de Jager said fine wools did well and short wool 40mm and under sold slightly cheaper. “Our highest price was R63,20/kg, paid by Modiano for four bales CapeMerino 17,5 micron BFY-lot belonging to A Visagie of Calvinia. But the global decline in wool production is a concern to exporters as it affects wool’s short-term availability. This is why demand should support current market levels, although the exchange rate will be a determining factor.”

The Cape Wools merino indicator gained 1,5% to close at R55,33/kg (clean). All prices were higher with medium wools gaining the most. Average prices for good top-making (MF5), sound, long fleeces (under 1% seed content) were: 19 microns up 2,4% to R68,12/kg; 19,5 microns up 1% to R61,48/kg; 20 microns up 3,5% R57,83/kg; 20,5 microns up 2,6% to R57,04/kg; 21 microns up 2,2% to R56,87/kg; 21,5 microns up 2,4% to R56,28/kg; and 22 microns up 0,8% to close at R54,71/kg. Modiano SA was a major buyer with 2 522 bales. 

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